CO2 just behind operating costs as top fleet concern
Limiting a fleet’s environmental burden is nearly as important as controlling operating costs in some cases, a new survey of fleet managers has revealed.
The latest report from Alphabet – the BMW-owned fleet management company – has outlined how fleet bosses with green targets in place are working to limit their environmental impact with nearly six in ten (58%) incorporating low carbon fleet vehicles or capping CO2 (43%).
From the 250 fleet decision-makers that took part in the survey, 61% of them ranked environmental issues as a big priority, just a smidgen behind understanding and controlling costs (62%), with driver safety deemed the overriding concern (71%).
There was a notable lack of green targets however with more than half of respondents not setting any green targets for their fleet so far.
Green jigsaw
Richard Schooling, Chief Executive of Alphabet, believes that cost reduction strategies and deploying green measures should not be mutually exclusive.
He continues: “This is especially pertinent with regard to the ongoing effort to reduce CO2.
“By setting a CO2 limit on choice lists and encouraging drivers to use their vehicles more efficiently, fleet managers can in fact achieve significant cost reductions in tandem with reducing emissions.”
Nearly eight in ten (77%) believe that rewarding environmentally-responsible behaviour would be spark more progress than punishing non-green conduct.
Schooling adds: “Vehicle CO2 is just one piece of the green jigsaw. It is the businesses that have challenged vehicle allocation and use and worked on changing drivers’ mind sets, that are most likely to thrive in the accelerating environmental changes that the industry is experiencing.”
Wait-and-see approach
Alphabet’s report also flagged a dwindling interest in telematics, hybrids and EVs with 54% stating no interest in any of them while just 14% plan to invest in telematics down the line.
Schooling understands their standoffishness: “The cost of telematics systems is falling while their capabilities continue to expand. Given the rapid pace of development, with factory-fitted telematics systems in the not too distant future, fleets may decide to take a wait-and-see approach.
“Commercially there is a real concern amongst fleet operators over the cost of replacing batteries and the vehicles’ residual value along with the practical concerns about range and availability of charge points.
“That said, 79% of respondents said they would use alternative fuel vehicles if they offered greater versatility and economy. The level of past and future interest in EVs suggests there is an expectation that EVs and hybrids will eventually provide a practical and sustainable alternative to today’s conventional fleet vehicles.”
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